Chinese HVAC supplier buys EV manufacturer
Gree Electric Appliances Inc., China's largest air-conditioner maker, is buying electric vehicle company Zhuhai Yinlong New Energy Co. to diversify its business outside of home appliances.
Gree Electric, based in the same southern Chinese city of Zhuhai, will finance the acquisition of Yinlong through a share sale and plans to release more information on April 4, the company said in a statement to the Shenzhen stock exchange.
Yinlong, which started manufacturing batteries for EVs in 2009, now has a line of seven electric passenger cars and 18 electric buses, according to its website.
Yinlong's purchase price was not disclosed.
Gree aims to dominate the air-conditioning market globally and pursue "technology-oriented diversified development," according to its 2014 annual report.
The company made about 85 percent of its revenue from air conditioners and parts, with 10 percent coming from other household appliances such as water heaters. It sells two out of every five air-conditioners in China, according to Euromonitor International.
Gree competes with Midea Group Co. and Haier Group Corp. in China and has factories in Brazil and Pakistan. The company derives 11 percent of its revenue from markets outside China.
Trading of Gree Electric's shares have been halted since Feb. 22 due to the acquisition.
Yinlong, which started manufacturing batteries for EVs in 2009, now has a line of seven electric passenger cars and 18 electric buses, according to its website.
Yinlong's purchase price was not disclosed.
Gree aims to dominate the air-conditioning market globally and pursue "technology-oriented diversified development," according to its 2014 annual report.
The company made about 85 percent of its revenue from air conditioners and parts, with 10 percent coming from other household appliances such as water heaters. It sells two out of every five air-conditioners in China, according to Euromonitor International.
Gree competes with Midea Group Co. and Haier Group Corp. in China and has factories in Brazil and Pakistan. The company derives 11 percent of its revenue from markets outside China.
Trading of Gree Electric's shares have been halted since Feb. 22 due to the acquisition.
